Tamboran Resources' First Quarter 2024 Activities Report: Drilling Success and Future Plans
TBN (TBN) Share Update November 2024 Tuesday 12th
Tamboran Resources Reports Successful Drilling and Future Plans in Beetaloo Basin
Tamboran Resources Corporation has released its first quarter activities report, highlighting significant drilling achievements and future plans in the Beetaloo Basin, Northern Territory, Australia.
Instant Summary:
- Completed drilling of Shenandoah South 2H well to a record depth.
- Initiated sidetrack drilling due to a mechanical issue.
- Upcoming drilling of Shenandoah South 3H well in November 2024.
- Plans for a major stimulation campaign in early 2025.
- Cash balance of US$74 million as of September 2024.
Drilling Achievements
Tamboran Resources has successfully drilled the Shenandoah South 2H (SS-2H) well in the Beetaloo Basin to a total depth of 20,669 feet (6,300 meters) within 35 days, marking it as the longest horizontal well in the basin to date. Despite encountering a downhole mechanical issue, the company initiated a sidetrack drilling, SS-2H ST1, which has reached a depth of 16,201 feet (4,938 meters) with record drilling rates.
The drilling operations have provided valuable geological data, confirming strong gas shows across the horizontal section with no observed faulting. The SS-2H ST1 well is expected to be completed by the end of November 2024.
Future Drilling and Stimulation Plans
Tamboran plans to commence drilling the Shenandoah South 3H (SS-3H) well in November 2024. This well will feature a 10,000-foot horizontal section, similar to the SS-2H well. Both the SS-2H ST1 and SS-3H wells are scheduled for a 60-stage stimulation campaign using Liberty Energy's frac fleet in early 2025.
Financial and Strategic Developments
The company maintains a strong financial position with a cash balance of US$74 million as of September 2024. Tamboran also contracted Enscope to order long lead items for the Sturt Plateau Compression Facility (SPCF) and is finalizing agreements with APA Group for the Sturt Plateau Pipeline (SPP).
Additionally, Tamboran sold its US drilling rig for US$8.5 million, which will support the funding of ongoing operations.
The successful drilling operations and strategic planning in the Beetaloo Basin are likely to boost investor confidence in Tamboran Resources. The completion of the SS-2H ST1 well and the upcoming SS-3H well could enhance the company's production capabilities, potentially leading to positive stock performance.
Investor Reaction:
Analysts are likely to view the drilling achievements and future plans positively, as they demonstrate Tamboran's operational capabilities and strategic foresight. The company's strong financial position further supports its growth prospects.
Conclusion:
Investors should keep an eye on the completion of the SS-2H ST1 and SS-3H wells and the subsequent stimulation campaign in early 2025. Tamboran's continued success in the Beetaloo Basin could present significant opportunities for growth and value creation.